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3 Bidding Challenges and How to Overcome Them

Our Birmingham contractor attorneys know how challenging and frustrating the construction bidding process can be for contractors. Contractors are often left wondering how to find the right bidding opportunities and craft a compelling proposal to increase their chances of winning the bid. This article will discuss a few common bidding challenges experienced by contractors.

1. Difficulty With the Bid Package

The bid package is a critical part of the bidding process. The bid package contains all the information necessary for a contractor to respond to a bid invitation including pertinent documents which include a letter explaining the solicitation (i.e., due date, how to meet eligibility requirements), project specifications, and other important files. The key is to comply with all bid package requirements to avoid disqualification from the bidding process. If you are disqualified, there may be an opportunity to amend and resubmit the package.

2. Responding to the Bid Effectively

It can be disappointing to put effort into crafting a proposal only to have it rejected. Drafting a response to a solicitation requires a good understanding of the government’s requirements and the ability to effectively promote your own skills and expertise to convey that you are best suited for the job. Zone in on what the client wants and demonstrate your understanding of their needs and how you plan to deliver. Demonstrate your plan in areas such as the scope of work summary, the development of a comprehensive project timeline, and the cost breakdown and overall pricing.

3. Bidding on the Wrong Jobs

Some contractors find themselves applying for any job they can find and undercutting their services to stay competitive. This bad cycle results in either low-paying jobs or a low bid-to-win ratio. While reviewing a bid package, if it is incomplete, unrealistic, or does not match your skill set or business in general, do not waste time on the bid. Focus your efforts on bids that are high-quality, profitable, and manageable. Break the cycle of bid failure by pursuing every bid with a critical eye. Winning a bid but not having the wherewithal to adequately handle the requirements or finding out that the bid is not as profitable as you thought will only cost you money in the long run.

Winning a bid requires a lot of time and effort. Mistakes can lead to missing out on a prized project. Our Birmingham contractor attorneys encourage contractors to spend time familiarizing themselves with the bidding process and equipping themselves with the right knowledge and tools to help them win more bids.

If you would like to speak with a Birmingham contractor attorney, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.